Getting a Lower Interest Rate on Auto Loans

2022 Alfa Romeo Stelvio SUV

Paying back your car loan is one thing, but high interest rates can really wreak havoc on your bank. Are you worried about high interest on a car loan, and are wondering, “Can you lower the interest rate on a car loan? If so, how can I lower my car loan interest rate?” The answer is yes, getting a lower interest rate on auto loans is certainly possible, but not without a little bit of effort on your end. In the following guide prepared by the Momentum Alfa Romeo finance team, learn the ropes of how you can snag a lower interest rate on a car loan in the Southlake area and elsewhere.

What is Considered a Good Interest Rate?

Before we answer the question, “How can I lower my car loan interest rate?” you want to have an idea of what your interest rate will be depending on your credit score. Here are the estimated interest rates for credit scores:

  • 800 – 740: 3.2% interest rate (on average)
  • 739 – 680: 4.5% interest rate (on average)
  • 680 and below: 6.5% – 12.9% (on average

How Can I Lower My Car Loan Interest Rate?

As mentioned previously, getting a lower interest rate on auto loans is possible, but you have to make a concious effort to better yourself financially. Taking the following steps will not only open doors for lower interest rates, it can place you in a better position for financing in the future:

  1. Find out your credit score. Before you go to apply for a car loan in Keller, you’ll want to know what your credit score is before you apply.
  2. Clean up your score. If your credit score is less than ideal, it is best to pay any outstanding balances to boost your credit score before applying for a loan. 
  3. Check for Refinance Loans. It’s important to know the average range of interest rates for your current credit score and loan amount. This is so you can compare rates from different lenders, and negotiate with different lenders for lower rates.
  4. Get a cosigner. If possible, have someone cosign for your loan. This is handy if you have bad credit, as having a cosigner can get you a lower interest rate on your loan. 

Choose In-House Financing with Momentum Alfa Romeo

Can you lower the interest rate on a car loan with in-house financing? Yes! Momentum Alfa Romeo works to accommodate all Dallas shoppers and elsewhere to receive the best rates possible on auto financing, even those who don’t have the best credit. Contact us to learn about applying for financing, or stop by our dealership in Hurst to speak with a finance expert in person.

 

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